| SA: WHY WE ARE LOSERS - 1 |
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FREAKISHLY OUT OF SYNC ARE THEY with global trends that SAs roaring, Stalinist-era
trade unions may yet turn out to be mere ossified paper rabbits. More potent by far than
the trade unions and their outmoded strike weapon is the major development of our time:
the biotechnological globalisation of economies, trade policies, trade and industry: a
vast new set of issues which, without exaggeration, is already making the world stand on
its head.
In a penetrating piece that would make salutary reading for both that great socialist/redistribu-tionist Thabo Mbeki and Cosatus Luddite leader, Sam Shilowa, Mr Tony Manning, CEO of the SA company, Management Consultants, deals with this revolution in the latest issue of the Rand Afrikaans University journal, Aambeeld. Emphasising that radical change is being forced on us, whether we like it or not, he writes: "Globalisation is a reality, not just a possibility or something that can be wished away. And theres no doubt that the pace and magnitude of change is extraordinary. About US$1,3 trillion a day flashes across the world. New technologies are disseminated with lightning speed. So product life cycles are shrinking and competition advantages unsustainable. Production tasks are shifting from country to country in pursuit of low wages, special skills, tax incentives, access to new markets and so on. "The new world order is characterised by chaos and disorder. Leaders pull at levers of control, but nothing happens. They pass laws they cant police and impose taxes they cant collect. Local may be a lekker idea, but we are all hostages to global forces. Contrary to what many people fear, it doesnt matter a great deal which political party runs SA in the future. President Mandela is a major figure of these times, but his power is limited now, a context that didnt exist when he was jailed back in the 1960s. His successor will have even less latitude. "The more integrated (we) become with the rest of the world, the more we all have to play the global game. Information techniques are causing the death of distance. Our most distant neighbours are milliseconds away. And the cost of communication is falling fast. A three minute phone call from New York to London cost US$300 in 1930 (in 1996 dollars) vs $1 today. The processing power of computer chips doubles every 18 months, while costs halve. In Europe, some 30 million households already watch satellite TV. "It is expected that the number of people on-line will extend from 57 million in 1997 to 377 million in 2000. It is hard to believe that only 18 months ago hardly anyone had heard of the Internet, |
much less used it. And its hard to imagine how communications and trade will evolve by the millennium, an event just two years away and well within any corporate planning cycle. "Business fuels the innovations that transform society. Politicians are acutely aware that business pays their bills. SA needs to remember this as we head into the future. And SA citizens need to understand this as they go to the polls and to work. Globalisation is a force that affects us all. Whether as threat or opportunity depends on how we act and on the message we send out to the world. "There can be no arguing that our No 1 goal should be to integrate our economy into the global economy as fast as possible. SA firms simply have to earn foreign exchange through export sales, and foreign investors must be persuaded to invest here. We cannot afford to go it alone. This is a small market. Most South Africans are poor. Foreign expansion may be the only way to keep sales volume and profits on an upward path. "Of course many will dispute this. So they need to understand why companies based in this country are spreading their wings so fast, why local firms have no option but to go global - and the consequences of trying to swim against this tide. "Currently, few foreigners are setting up shop here. Those that do are cautious about serious investment in factories, machines or jobs. Instead, they pragmatically set up alliances, sign distribution agreements and enter into licensing or franchise deals which give them the freedom to leave if things go wrong." Then comes the main meat of his warning: "There are many reasons why South Africa lags in the international stakes. But one that deserves special concern at this time is labour. For sad to say, our workers choose to be uncompetitive, and laws are being passed that make them even more unattractive in a world market. The poverty that is so widespread here today is nothing compared to what lies ahead. This country has a jobs crisis of monumental proportions. Short of a miracle, there is absolutely no chance that it will be alleviated in the foreseeable future. In fact, globalisation will ensure that the situation gets even worse in the very near term. "South African trade unions talk about the need for job creation, and agitate for better wages and working conditions. Union membership is growing fast in SA, and Cosatu recently launched a major campaign to attract another one million members by the year 2000. However, 20 million Asians have lost their jobs in a matter of months: and downward pressure on wages is spreading fast. |
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